Ichimoku analysis (4-hour chart)
Tenken-Sen- 1.26390
Kijun-Sen- 1.26409
The pair rebounded sharply despite strong Canadian jobs data. The Canadian economy has added 90000 jobs in Aug compared to a forecast of 67000. The unemployment came at 7.1% vs . estimate of 7.3%. It hits a high of 1.26953 and is currently trading around 1.26684. The overall trend remains bullish as long as support 1.2490 holds.
The reasons for the jump are
The surge in US treasury yields is supporting the US dollar at lower levels.
The spread of delta variant coronavirus.
Intraday Trend –Bullish
The near-term resistance is around 1.2780, a breach above targets 1.28090/1.2860/1.2900. On the lower side, immediate support stands around 1.2580; violation below will take the pair down to the next level 1.2552/1.2500.
It is good to buy on dips around 1.2628-300 with SL around 1.2570 for a TP of 1.2800.
